MA ENA! A Abdee AaBbCcDc No Spacing Heading Group Project - Preparation of a Master Budget Sharjah International Paints and Chemicals Limited is a multinational company operating in and around The United Arab Emirates. The company is having expertise in the manufacturing of certain paints and chemicals which are mainly for export purpose. The company provided you with the tion on actual and project sales in units and you are required to make the use of this information so as to provide the company as required. Month Units 48,000 July 2018 (Budgeted) August 2018 (Budgeted) September 2018 (Budgeted) October 2018 (Budgeted) 70,000 90,000 80,000 50,000 November 2018 (Budgeted) December 2018 (Budgeted) January 2019 (Budgeted) February 2019 (Budgeted) 40,000 68,000 80,000 Required: 1. Prepare a Sales budget in units and dirham for the months of July to December 2018 and for the two quarters in total. The selling price per unit is AED 50. (5 marks) 2. Assume that the company collects 60% of its sales in the month of the sale, 40% in the month Focus ates) MacBook Air * 1 T Aalbcdie Abcdte AaBCCDC Heading No Spacing * A PAIE October 2018 (Budgeted) November 2018 (Budgeted) 50,000 40,000 December 2018 (Budgeted) 68,000 January 2019 (Budgeted) 80,000 February 2019 (Budgeted) Required: 1. Prepare a Sales budget in units and dirham for the months of July to December 2018 and for the two quarters in total. The selling price per unit is AED 50. (5 marks) 2. Assume that the company collects 60% of its sales in the month of the sale, 40% in the month following the sale. Prepare a Cash Receipts schedule for 6 months ending December 2018 and total for the last two quarters of 2019. Accounts Receivable balance as of June 30, 2018 was AED 480,000. (15 marks) 3. Refer to the projected sales that you have calculated. Prepare a Production Budget for 6 months ending December 2018 and total for the last two quarters of 2018. The company's inventory at the end of each month must equal 20% of next month's sales. On June 30, 2018, inventory balance was 12,000 units. (10 Marks) 4. Prepare a Direct Materials Purchase Budget in quantity and in dollar amounts for 6 months ending December 2018 and total for the last two quarters of 2018 based on the production hudoet above. One unit of noduct reines R liters of materials and the company's nolie is to Focus MacBook Air ferences Mailings Review View A AEE Tell me - Albcode Abde AaBbCcDc Aab budget above. One unit of product requires 8 liters of materials and the company's policy is to maintain an ending inventory of materials equal to 30% of next month's production needs. Each liter of direct materials cost AED 3.50. June 31, 2018 inventory balance was 96,000 ounces (16 marks) 5. Assuming that the company's policy is to pay 70% of each month's cost of materials purchases in the same month and 30% in the month after, prepare a Cash Disbursement (cash payment) schedule for 6 months ending December 2018 and total for the last two quarters of 2018. The accounts payable balance at the end of June 2019 was AED 296,000 (12 marks) 6. The company needs 0.20 hours of direct labor to manufacture one unit of production, and has a policy of paying a minimum of 6,000 hours per month and pays AED 15 per hour. Prepare a Direct Labor Budget for months ending December 2018 and total for the last two quarters of 2018. (10 marks) 7. The following are the projected cash expenditures for 2018 in AED July August Sept. Oct. Nov. Manufacturing 152,000 158,000 186,000 202,000 180,000 118,000 Overhead Selling S000 106,000 82.000 146,000 88,000 84,000 Expense Administrative 326,000 322,000 388,000 364,000 300,000 294,000 Expense Equipement 200,000 600,000 1,200,000 purchase 20,00 0,00 120,00 On June 30, 2018, the company had a cash balance of AED 272,000 on hand. The company has an arrangement with their bank to have a bank overdraft policy of maximum AED 500,000 as and when needed and borrows in the nearest '000s. The interest on the overdraft is 1.2% per month ates) Focus MacBook Air Group Project CC-1103 References Mailings Review View Tell me AAEEE! Albcode Aanbod AaBbCcDc Aabc DAE No Spacing in the same month and 30% in the month alter, prepare a Cash Disbursement (cash payment) schedule for 6 months ending December 2018 and total for the last two quarters of 2018. The accounts payable balance at the end of June 2019 was AED 296,000. (12 marks) 6. The company needs 0.20 hours of direct labor to manufacture one unit of production, and has a policy of paying a minimum of 6,000 hours per month and pays AED 15 per hour. Prepare a Direct Labor Budget for months ending December 2018 and total for the last two quarters of 2018. (10 marks) 7. The following are the projected cash expenditures for 2018 in AED: July August Sept. Oct. Nov. Dec. Manufacturing 152,000 158,000 186,000 202,000 180,000 118,000 Overhead Selling 98,000 106,000 82,000 146,000 88,000 84,000 Expense Administrative 326,000 322,000 388,000 364,000 300,000 294,000 Expense Equipment 200,000 600,000 1,200,000 purchase On June 30, 2018, the company had a cash balance of AED 272,000 on hand. The company has an arrangement with their bank to have a bank overdraft policy of maximum AED 500,000 as and when needed and borrows in the nearest "000s. The interest on the overdraft is 1.2% per month and paid at the time of loan repayment. The company also have a policy of maintaining a minimum cash balance of AED 200,000 at the end of each month. In November, the company plans to pay a dividend of AED 300,000 8. Prepare a Cash Budget for the last 6 months of 2018 and in total. (25 marks) Focus 0 0/I dom @ 2 (B, w x MacBook Air Solve only Question 7 Focus MacBook Air